Real estate investor protection and OA law amends due for approval

The Real Estate Investor Protection Law, Tanweer, has been drafted and is awaiting approval from the ruler’s court in Dubai. A version of the law was released in the media following which a lot of feedback was collected from individuals involved in real estate investment to draft the final edition that was sent for approval.

Tanweer is the first of its kind real estate law for regional and global investors that will take complete and detailed inter legislative laws and regulations that have come into being between 2003 and 2008 to ascertain optimal application of those regulations.

Some of the entities included in the law include allowing investors to obtain complete refund in case the developer fails to handover a property within a speculated time or if they commit any fraud or changes the specifications of the deal without permission. Any breach in warranty or undertaking by the seller or the broker can also be grounds for the investor to claim compensation.

Additionally, the Dubai owners’ association law is expected to be amended to improve efficiency of the OA’s. Rera issued a new circular in March stating that developers who get complaints of negligence will be shunned from management in the first year itself. In this situation, an IOA will be set up to manage the building. The circular also states that developers who have been in the management of joint-ownership enterprises for a year have to establish an owners association before claiming any fees of service.